SINGAPORE: Temasek-backed cashback and rewards platform ShopBack has reduced its employee headcount by 24%, or 195 roles, “to become more focused and self-sustainable as a company”.
The announcement was made by co-founder and chief executive Henry Chan at the company’s town hall on Tuesday.
Those laid off were notified within an hour of the event’s conclusion in markets where this was possible, according to a message by Chan posted on the ShopBack website.
The company also called off the rest of the workday.
All departures were kept to the same day “out of respect and to ease transition for departing team members”, with their last in-office day on March 19.
“Undoubtedly, this is one of the hardest decisions I’ve had to make in our company’s history,” said Chan in his message titled “On Focus And Sustainability – A Painful Decision”.
“I made the mistake of pursuing too many directions as a company and expanding our team too rapidly. I take full responsibility for the decisions that have led to this situation.”
Laid-off employees were offered pay for at least two months of their notice period, and a month of severance payment for every full year of service or based on local statutory guidelines – whichever is higher.
They will also receive a bonus equivalent to a month’s salary, which will be prorated for those who have yet to complete a full year of service, on top of encashment of leave days which have been accrued and unutilised.
All outgoing employees will have their medical insurance coverage extended, access to mental healthcare support will run until June 30.
These employees will also receive career transition support, which includes either curriculum vitae reviews or a “career transition support allowance”.
Visa holders will have their repatriation costs covered, including airfare and a budget for moving expenses – to “ensure a seamless transition back home if that is the option they are pursuing”, said Chan.
In his note, the chief executive disclosed that ShopBack approached its headcount reductions by “redesigning from scratch a reorganised and lean organisational structure” that would enable it to deliver on its strategy for sustainable growth. — The Straits Times/ANN